If you’re a car enthusiast, you’re aware that Tesla is one of the biggest car companies and the first ever to perfect an electric vehicle design.
However, are you also aware that Tesla’s used cars are even more expensive than the new ones? Learn how it all could happen!
Why Are Used Teslas So Expensive?
Used Teslas are expensive because of the strong demand for electric vehicles resulting from the rising gas prices. In addition, there’s a global chip shortage affecting the production of new Teslas, making used Teslas highly available and in high demand in the used car market. As a result, used Teslas have significantly increased in price.
Ready to discover more about why are used Teslas so expensive? Here are 11 reasons; keep reading!
1. Tesla’s Shortage On The Market
The reason used Teslas are so expensive is that there is a shortage of Teslas on the market, and when there is a shortage, people will tend to get what’s accessible.
As a result, people who want a new Tesla are put on a waiting list that might last up to ten months unless they want to pay even more for pricey options.
So, since people won’t have to wait to buy a new Tesla, used Teslas are more expensive because they are readily available in the used car market.
2. Tesla’s New Car Market Is Out Of Reach
Because of the COVID-19 pandemic, Tesla is one of the companies that suffered from a global supply shortage, not just with chips but also with essential parts in manufacturing Tesla cars.
So, the company’s car production has been slow for the past years, making the people who want a new Tesla shift their attention to used Teslas because of waiting.
That said, the used Tesla car market has been surging, resulting in used Tesla cars’ increasing prices.
3. Used Tesla Buyers Are Willing To Pay
In connection with the new Tesla’s low supply, people looking for a new produced Tesla will start looking for options.
Further, since most consumers don’t want to waste time waiting for a new batch of new Tesla vehicles, they’ll immediately consider a used Tesla.
Finally, buyers are willing to spend money on even used cars to have their desired Tesla vehicle, making used Teslas more expensive.
4. Tesla’s Full-Self Driving Package
One thing to keep in mind is that Tesla looks to be integrating the Full Self-Driving package with all of the used cars it sells, which is helping to drive up pricing.
Furthermore, Tesla recently modified its policy to prohibit anyone from purchasing their car once their lease has been done. Instead, it expands the company’s used car supply for reselling.
Overall, the Tesla used market is rising because of Tesla’s strategy of making its used cars resellable.
5. Tesla’s High Demand
Tesla’s demand will always be the company’s power.
That said, the truth is that orders for Tesla’s vehicles have consistently surpassed its ability to supply them throughout most of its operations.
Moreover, it was the case in 2021, and it appears to continue in 2022. As a result, despite several price increases for Tesla vehicles, demand has risen faster than supply.
In fact, many Tesla models are currently sold out till 2023, which makes used Teslas more desirable to many.
6. Used Tesla’s Availability
Because the COVID-19 outbreak slowed production, carmakers had to catch up.
Finally, now that the worst of the outbreak is starting to pass, automakers are attempting to ramp up production, but global chip shortages have made this nearly impossible.
Of course, it makes used Teslas notoriously expensive, and with increased demand and a shortage of new vehicles, prices are likely to rise much further.
7. Tesla’s Chip And Raw Materials Shortage
Many local used car markets, including Tesla, are rising due to a chip shortage, increased cost of raw materials, and other issues that have caused new car deliveries to be delayed.
As a result, the number of used Teslas for sale has increased yearly. Also, because they cannot purchase new cars on the spot, many car buyers have turned to used Tesla vehicles.
That said, used Tesla cars have started to become expensive.
8. Used Tesla Tax Benefit
Electric cars are eligible for a $7,500 federal tax credit; however, Tesla has long reached the set limit of 200,000 units.
As a result, there’s no federal tax credit available for used electric vehicles, and only new Tesla EVs are eligible for the tax credit.
Furthermore, the tax credit is intended to increase the number of electric vehicles on the road, but used car sales do not. Thus, the cost of a used Tesla continues to grow.
9. Tesla’s Used Car Market Is Surging
The increased price is most likely because of Tesla’s soaring popularity and the rising influence of electric vehicles.
Furthermore, Tesla’s automobiles are in such high demand that you won’t be able to receive one for several months after ordering a product.
That said, people are becoming interested in a used Tesla because it is easier to access than waiting for new car production; that’s no certainty when.
10. Tesla’s Used Car Auction Shutdown
Because of the pandemic, car auctions where Tesla is sold have been shut down due to government initiatives to avoid spreading the COVID-19 virus.
So, since then, the auctions have been happening online, which most people are not aware of and do not enjoy.
As a result, because no auctions are happening, a used Tesla significantly increases its price because many people look after the vehicle.
11. Tesla’s Used Cars Are Certified Pre-Owned
Used electric vehicles, in general, have a strong track record in terms of performance and battery capacity. Still, not all buyers choose to do their investigation into a car’s history.
So, that’s why purchasing a Tesla Certified Pre-Owned vehicle is a reasonable solution.
In addition, a Certified Pre-Owned vehicle is simply a used Tesla car that has met specified dealership or manufacturer standards.
As a result, since CPO can guarantee you how worth buying the car is, the company will now upcharge the vehicle for a higher price.
Used Teslas are expensive because of the low production of new Teslas, which increases the demand for used Teslas.
Finally, other factors, such as shortages in raw materials and chips critical in Tesla’s car system, simply make used Teslas more expensive than new ones.